Braintree Property Tax Rate Hike Headed to Council

Braintree's tax rates would increase next year to $11.42 per thousand for residential property and $25.94 for commercial/industrial under a proposal recommended Tuesday night by the Committee on Ways & Means.

A tax classification shift, which since 1986 has extracted extra value from business properties in Braintree, would save residential owners on average more than $3 per $1,000 of property value in fiscal year 2014 if approved by the full Town Council.

Committee members voted unanimously in favor of the tax plan, put forward by the Mayor's Office and the Board of Assessors. The average residential bill would increase $145 next year, depending on fluctuations in property value. The mean average residential property value in Braintree is nearly $336,000, up from $332,000 last year.

Last year, residential owners paid $11.11 per thousand and commercial and industrial owners paid $25.44.

The majority of communities in Massachusetts use a single property tax rate, Chief of Staff and Operations Peter Morin said. But because of Braintree's "diverse tax base," the town uses the allowable tax shift to save homeowners a considerable amount of money.

Under the current proposal, the average residential property owner would pay $3,836 this year. Without the 175 percent tax shift onto commercial and industrial properties, that same homeowner would pay $4,978. The rate per thousand would be $14.82.

"This provides significant relief to residential taxpayers," Morin said.

Still, the potential $145 increase in residential taxes is higher than last year's hike (approximately $80) because residential property values have increased, while commercial values have remained flat, Morin said.

Since Braintree implemented its new form of government, the average annual residential increase has been $96.70. During the four years prior to the change, it was on average $143.25 per year, according to a memo to the council from Morin and Board of Assessors Chair Robert Cusack.

By comparison, Hingham had a single property tax rate of $12.32 per thousand last year. Milton had a split rate of $14.70 for residential and $22.54 for commercial in fiscal year 2013. Quincy's split was $14.50 for residential and $30.61 for commercial.

In other business, Councilor Paul "Dan" Clifford withdrew a proposal to examine an additional stipend for councilors who serve on the most active committee, Ways & Means, which has oversight of the town budget.

Clifford originally said increasing the councilors' pay may act as an incentive to committee participation, but on second thought said Tuesday that it should be the residents of Braintree and not councilors who decide on pay.